Sat Feb 01 05:46:34 UTC 2025: ## Union Budget 2025: A Balancing Act for India’s Economy

**New Delhi** – Finance Minister Nirmala Sitharaman faces a formidable challenge as she prepares to present the Union Budget 2025-26. With GDP growth projected to slow to a four-year low of 6.4% and inflation stubbornly high, expectations are high for measures to boost the struggling middle class and revitalize the economy.

Experts anticipate a delicate balancing act. While the government needs to stimulate consumption and growth through middle-class tax relief, it must simultaneously maintain fiscal discipline and continue substantial investment in infrastructure. This is crucial for achieving Prime Minister Modi’s “Viksit Bharat” (Developed India) vision by 2047.

Key proposals reportedly include significant tax reforms, such as raising the basic exemption limit to ₹10 lakh and introducing a new 25% tax bracket for incomes between ₹15-20 lakh under the new income tax regime. These measures aim to provide much-needed relief to the middle class.

Continued substantial investment in infrastructure is also expected, building on the already allocated 23% of total spending on capital expenditure. This investment is seen as vital for attracting private investment and job creation. However, the current fiscal deficit of ₹9.14 lakh crore (56.7% of the annual target) presents a major hurdle. The government aims to reduce this to 4.9% of GDP this year and below 4.5% next year, requiring strict spending controls.

Specific sectors are also anticipating significant allocations: the railways are seeking ₹1 lakh crore for modernization, the defense sector nearly ₹6 lakh crore for boosting indigenous manufacturing, and agriculture is hoping for ₹1.35-1.4 lakh crore for farmer welfare and infrastructure.

The upcoming budget represents a critical opportunity to recalibrate India’s economy in response to global shifts. Its success hinges on effectively balancing immediate relief, long-term growth, inflation control, and fiscal responsibility. The nation awaits Finance Minister Sitharaman’s strategy with bated breath.

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